Costco 'moving forward' with 2024 northwest Visalia location near Visalia Industrial Park

A few months ago, city of Visalia officials were worried that a dispute with the county would tie up a big annexation in northwest Visalia next to the Visalia Industrial Park that included a new Costco store as part of a 507-acre, 3,300-home residential development.

A theater is also planned for the area, as well as restaurants and shops.

”Things went quiet on Costco” for a while, said one city planner. The dispute ended when the county approved the annexation of Carleton Acres into the city of Visalia that would include 160,000 square-foot Costco at the northeast corner of Riggin Avenue and Shirk Street.

For over a year all annexations were on hold until the city formulated an ag mitigation policy after they were sued by the Sierra Club. Then a standoff with the county held things up longer.

Cold feet?

Now the city is processing a parcel map for Costco. That would mean the big retailer would own their property of 19 acres with room for the warehouse, fueling station, and even a car wash.

Construction drawings could soon go forward, and the Seattle-based retailer would be off to the races.

Costco spokesperson Joseph Welch says despite the long wait for the annexation, "we are moving forward on the new store in 2024.”

Will the warehouse retailer open in time for this year's holidays? That depends on a lot of factors, says Welch, including the weather and how fast the city approves permits for the big store.

A second Costco in Visalia is significant for the city of Visalia, with the average annual sales at a Costco of about $252 million. Visalia gets 1% of sales and has budgeted about $44 million this fiscal year in sales tax revenue. This one retailer would offer a nice bounce to that number. Costco has announced some 31 new locations in the next year including 24 in the United States.

Stockholders at Costco Wholesale have been rewarded with its stock value up about 38% in the past year.

Costco plans its largest store ever in Fresno at 240,000 square feet that would include about 50,000 square-feet for distribution of e-commerce goods under the same roof. Asked if the new Visalia store, next to the industrial park and UPS, would include any e-commerce operation, Welch said there are no plans for that in Visalia.

Besides the substantial sales tax benefit to the city, the new Costco will be a big employer with 250 to 275 new employees. Parking in the sprawling lot next to the complex will accommodate almost 1,000 vehicles.The location of the new store should make it easier for shoppers in northern Tulare County to access a Costco, with many of them going to Hanford rather than the congested south Visalia location. The location of the big retailer on Shirk is expected to pioneer a new shopping district next to several large subdivisions that will be breaking ground in the next couple years.

To accommodate the truck and motor vehicle traffic flow, the city has been widening the street that will connect to both Highway 99 to the west and east to Dinuba Boulevard with four lanes.

Despite Costco spokesman's statement, Mayor Brian Poochigian says the city has not heard directly that the project is a go, but takes the statement as good news for the city.

"We're always glad when consumers have a new choice where they shop, particularly a place that can save them money" on everything from gas to groceries, he said.

One retail analysis found that "Costco's secret weapon is its membership model", with some 55 million members worldwide and a 90% annual renewal rate. Loyal customers, happy employees, and unbeatable prices on high quality goods are the "secret sauce."

While it may be unusual for a small city of 150,000 people to have two Costcos, consider that the trade area incorporates more like 630,000 people.

No word on whether rival Sam's Club will move forward on a potential warehouse store on South Mooney reported here in the past few months.

This article originally appeared on Visalia Times-Delta: Costco 'moving forward' with 2024 northwest Visalia location